CAIRO COMMUNICATIONS SPA (CAI.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:CAI - IT0004329733 - Common Stock
2.818 EUR
+0.03 (+1%)
CAI gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 68 industry peers in the Media industry. CAI has only an average score on both its financial health and profitability. CAI is valued quite cheap, but it does not seem to be growing. CAI also has an excellent dividend rating. With these ratings, CAI could be worth investigating further for value and dividend investing!.
1. Profitability
1.1 Basic Checks
- In the past year CAI was profitable.
- In the past year CAI had a positive cash flow from operations.
- In the past 5 years CAI has always been profitable.
- CAI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- CAI's Return On Assets of 2.21% is in line compared to the rest of the industry. CAI outperforms 55.22% of its industry peers.
- CAI has a Return On Equity of 7.19%. This is comparable to the rest of the industry: CAI outperforms 55.22% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 6.22%, CAI is in line with its industry, outperforming 59.70% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for CAI is below the industry average of 7.53%.
- The 3 year average ROIC (5.40%) for CAI is below the current ROIC(6.22%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.21% | ||
| ROE | 7.19% | ||
| ROIC | 6.22% |
ROA(3y)2.14%
ROA(5y)2.03%
ROE(3y)7%
ROE(5y)6.89%
ROIC(3y)5.4%
ROIC(5y)5.14%
1.3 Margins
- CAI has a Profit Margin (2.72%) which is in line with its industry peers.
- CAI's Profit Margin has improved in the last couple of years.
- CAI has a Operating Margin (7.18%) which is comparable to the rest of the industry.
- In the last couple of years the Operating Margin of CAI has grown nicely.
- CAI has a Gross Margin of 71.90%. This is in the better half of the industry: CAI outperforms 74.63% of its industry peers.
- CAI's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.18% | ||
| PM (TTM) | 2.72% | ||
| GM | 71.9% |
OM growth 3Y1.56%
OM growth 5Y2.61%
PM growth 3Y-2.92%
PM growth 5Y3.71%
GM growth 3Y-0.01%
GM growth 5Y-0.93%
2. Health
2.1 Basic Checks
- CAI has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- CAI has about the same amout of shares outstanding than it did 1 year ago.
- The number of shares outstanding for CAI remains at a similar level compared to 5 years ago.
- Compared to 1 year ago, CAI has an improved debt to assets ratio.
2.2 Solvency
- CAI has an Altman-Z score of 1.42. This is a bad value and indicates that CAI is not financially healthy and even has some risk of bankruptcy.
- CAI has a Altman-Z score of 1.42. This is comparable to the rest of the industry: CAI outperforms 50.75% of its industry peers.
- The Debt to FCF ratio of CAI is 1.98, which is an excellent value as it means it would take CAI, only 1.98 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of CAI (1.98) is better than 82.09% of its industry peers.
- A Debt/Equity ratio of 0.33 indicates that CAI is not too dependend on debt financing.
- CAI's Debt to Equity ratio of 0.33 is fine compared to the rest of the industry. CAI outperforms 68.66% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 1.98 | ||
| Altman-Z | 1.42 |
ROIC/WACC0.94
WACC6.59%
2.3 Liquidity
- CAI has a Current Ratio of 0.96. This is a bad value and indicates that CAI is not financially healthy enough and could expect problems in meeting its short term obligations.
- CAI has a Current ratio (0.96) which is in line with its industry peers.
- CAI has a Quick Ratio of 0.96. This is a bad value and indicates that CAI is not financially healthy enough and could expect problems in meeting its short term obligations.
- The Quick ratio of CAI (0.92) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.96 | ||
| Quick Ratio | 0.92 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 12.58% over the past year.
- The Earnings Per Share has been growing slightly by 1.43% on average over the past years.
- Looking at the last year, CAI shows a decrease in Revenue. The Revenue has decreased by -1.16% in the last year.
- CAI shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -2.20% yearly.
EPS 1Y (TTM)12.58%
EPS 3Y-3.94%
EPS 5Y1.43%
EPS Q2Q%3.38%
Revenue 1Y (TTM)-1.16%
Revenue growth 3Y-1.05%
Revenue growth 5Y-2.2%
Sales Q2Q%-1.55%
3.2 Future
- CAI is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.78% yearly.
- CAI is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -1.07% yearly.
EPS Next Y8.82%
EPS Next 2Y5.72%
EPS Next 3Y3.78%
EPS Next 5YN/A
Revenue Next Year-1.36%
Revenue Next 2Y-1.23%
Revenue Next 3Y-1.07%
Revenue Next 5YN/A
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 9.39, which indicates a very decent valuation of CAI.
- Compared to the rest of the industry, the Price/Earnings ratio of CAI indicates a rather cheap valuation: CAI is cheaper than 80.60% of the companies listed in the same industry.
- CAI is valuated cheaply when we compare the Price/Earnings ratio to 27.25, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 7.34, the valuation of CAI can be described as very cheap.
- Based on the Price/Forward Earnings ratio, CAI is valued cheaply inside the industry as 86.57% of the companies are valued more expensively.
- When comparing the Price/Forward Earnings ratio of CAI to the average of the S&P500 Index (25.98), we can say CAI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.39 | ||
| Fwd PE | 7.34 |
4.2 Price Multiples
- CAI's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. CAI is cheaper than 94.03% of the companies in the same industry.
- 95.52% of the companies in the same industry are more expensive than CAI, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.4 | ||
| EV/EBITDA | 2.79 |
4.3 Compensation for Growth
- CAI's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- CAI has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.06
PEG (5Y)6.55
EPS Next 2Y5.72%
EPS Next 3Y3.78%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 8.21%, CAI is a good candidate for dividend investing.
- CAI's Dividend Yield is rather good when compared to the industry average which is at 3.08. CAI pays more dividend than 98.51% of the companies in the same industry.
- CAI's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.21% |
5.2 History
- The dividend of CAI is nicely growing with an annual growth rate of 21.85%!
Dividend Growth(5Y)21.85%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- CAI pays out 36.62% of its income as dividend. This is a sustainable payout ratio.
- The dividend of CAI is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP36.62%
EPS Next 2Y5.72%
EPS Next 3Y3.78%
CAIRO COMMUNICATIONS SPA / CAI.MI FAQ
What is the fundamental rating for CAI stock?
ChartMill assigns a fundamental rating of 6 / 10 to CAI.MI.
Can you provide the valuation status for CAIRO COMMUNICATIONS SPA?
ChartMill assigns a valuation rating of 8 / 10 to CAIRO COMMUNICATIONS SPA (CAI.MI). This can be considered as Undervalued.
Can you provide the profitability details for CAIRO COMMUNICATIONS SPA?
CAIRO COMMUNICATIONS SPA (CAI.MI) has a profitability rating of 6 / 10.
Can you provide the PE and PB ratios for CAI stock?
The Price/Earnings (PE) ratio for CAIRO COMMUNICATIONS SPA (CAI.MI) is 9.39 and the Price/Book (PB) ratio is 0.69.
What is the expected EPS growth for CAIRO COMMUNICATIONS SPA (CAI.MI) stock?
The Earnings per Share (EPS) of CAIRO COMMUNICATIONS SPA (CAI.MI) is expected to grow by 8.82% in the next year.